Breaking the BIT Mold: Brazil's Pioneering Approach to Investment Agreements

AJIL Unbound (American Journal of International Law blog), Symposium on the BRICS Approach to the Investment Treaty System (2018)

5 Pages Posted: 12 Jun 2019

See all articles by Henrique Choer Moraes

Henrique Choer Moraes

Embassy of Brazil in New Zealand ; KU Leuven

Felipe Hees

affiliation not provided to SSRN

Date Written: August 27, 2018

Abstract

Brazil only recently joined the collection of states that have adopted international investment agreements (IIAs), but in doing so it developed a noteworthy approach in the form of the Cooperation and Facilitation Investment Agreement (CFIA). In this essay, we explore the characteristics and merits of this particular treaty model, making three points: First, the CFIA exhibits unique features that set it apart from traditional bilateral investment treaties (BITs), including the state-to-state management of investment relations and an emphasis on investment facilitation rather than investment protection. Second, the CFIA displays a degree of “interoperability” that has made it possible for Brazilian partners to sign these agreements while simultaneously holding BIT portfolios, despite significant differences between the two approaches. Finally, one of the CFIA's key features — that of investment facilitation — is a promising basis for reform in multilateral settings such as the World Trade Organization (WTO). In short, we believe that the CFIA offers an innovative and attractive option for states looking to supplement or revise traditional BITs, both bilaterally and multilaterally.

Keywords: Investment agreements, Brazil

Suggested Citation

Choer Moraes, Henrique and Hees, Felipe, Breaking the BIT Mold: Brazil's Pioneering Approach to Investment Agreements (August 27, 2018). AJIL Unbound (American Journal of International Law blog), Symposium on the BRICS Approach to the Investment Treaty System (2018), Available at SSRN: https://ssrn.com/abstract=3394717 or http://dx.doi.org/10.2139/ssrn.3394717

Henrique Choer Moraes (Contact Author)

Embassy of Brazil in New Zealand ( email )

Level 13, 10 Customhouse Quay
Wellington, 6011
New Zealand

KU Leuven ( email )

Belgium

Felipe Hees

affiliation not provided to SSRN

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